The Colombia-United States free-trade agreement

Get cracking

COLOMBIA's government had waited so long for the country's free-trade agreement (FTA) with the United States to be approved that when it passed at last, officials were caught a little off guard. The deal had been stalled in Washington for more than five years because of lobbying by left-leaning advocacy groups, who asked to see progress in Colombia's human-rights record before rewarding the country with the trade deal. The FTA is expected to increase Colombia's long-term economic growth rate by over half a percentage point.

While the pact languished, Colombia hired Washington lobbyists to drum up support and invited dozens of congressmen to tour the country. In April Juan Manuel Santos, Colombia's president, reached an agreement with Barack Obama on a list of nine policies the country could implement to protect labour rights in exchange for approval of the FTA. On October 12th Congress ratified the deal, as well as similar agreements with Panama and South Korea.

But two days earlier Juan Camilo Restrepo, Colombia's agriculture minister, said the country was “not ready” for the effects of the FTA. “We've still got a long way to go,” he said, warning that small-scale rice and corn growers, dairy farmers and poultry producers needed to adapt quickly, so that when the “cold shower of the FTA hits them, it doesn't turn into pneumonia.”

Álvaro Uribe, who negotiated the agreement with George W. Bush, had set up a programme of subsidies to help farmers compete with cheap agricultural imports from the United States once the deal came into effect. But it soon became the centre of a corruption scandal in which payments meant for small farmers went instead to large landholding families. (The trial of Andrés Felipe Arias, the former agriculture minister who was in charge of the programme, coincidentally began the same day the FTA was approved.)

The country also failed to use the five years of debate, haggling and political wrangling to update its poor transportation infrastructure. Better access to ports and adequate highways will be essential to move the estimated $50 billion a year in exports Colombia will be sending the United States within five years, up from $17 billion today. Many of the works under construction today will likely be inadequate by the time they are finished.

Mr Obama is expected to sign the FTA next week, kicking off an implementation phase in both countries to adapt internal laws and regulations to the agreement. Mr Santos has said the country should start preparing for the pact to come into force in the first half of 2012.

But the sectors of the Colombian economy that need more time to adapt may gain a reprieve if the political winds in the United States shift back to the left. Some activists say their attempts to block the FTA will not stop. “The struggle continues,” said Dan Kovalik, a lawyer with America's United Steelworkers Union, who pressed for more protections for trade unionists before a trade deal was approved. The labour movement was a major supporter of Mr Obama in his 2008 campaign, and as he gears up to run for re-election unions could once again provide essential votes. “In 2012 we're going to have a hell of a lot of leverage,” Mr Kovalik said.

As the article clearly stated: the US doesn't give a crap whether they're ready or not. Our goods'll pour down their throats and they, by signing this deal, will have landlords in Boca Raton instead of Columbia. Nice bit of rape and pillage here.

additionally, Colombia may don´t have the infrastructure to compete with the united states companies, my country will get really benefited , with all the machinery and technology that is going to be imported for very low prices we will bounce to industrialization and become a true power in economic terms, Colombia, as the second most bio diverse country in the world, has all the resources needed for a development, now, with this agreement, we will be able to truly use them.

Colombia's infrastructure for imports is so outdated that even with the FTA approved it will be cheaper to buy the low-quality locally made consumer goods than the new, cheaper but still pricey products that will come in from the US, on the other hand the cost of exporting from Colombia to the US will still make many if not most Colombian products not competitive in the US when compared to Mexican or Chinese imports, thus this FTA will have zero to minimal impact on either country.

Columbia should have been in the process of getting themselves ready for free trade agreement with the United States. They had 5 years to prepare, but they are saying, “Many of the works under construction today will likely be inadequate by the time they are finished.” I guess I understood that they were not sure if the trade agreement would be passed so didn’t want to spend unnecessary money and resources. This could be a disaster for the U.S. if Columbia doesn’t step it up and get their act together.

Columbia should have been ready for the free trade agreement with the United States because it was proposed five years ago. The United States is lucky they did not accept it right away because if they are not ready now they would not have been ready five years ago. Columbia is using this as a way to jump start some of their programs that should already be well on their way. President Obama is somewhat using this FTA as leverage for re-election because of the support he will gain from the unions.

For the US, the main target is export. Now,Colombians will obviously disregard the expensive US imports.Flowers, emerald, coal and coffee from Colombia seems to work in the US market. So Colombians should win .

Free trade agreements have become a very natural occurrence, especially in Europe and Asia. South America has a large trade block already with other South American states. The U.S. has been trying to get in on the trade action in South America for a while now, but with very little success. The U.S. will probably continue to attempt to recruit other South American states for free trade agreements. Obviously, there are states like Brazil and Venezuela that will not make any such agreements. Colombia has been a rare case, and perhaps if successful will open the door to other trade agreements between the U.S. and South American states.

The signing of this FTA is yet another great step for Colombia's development and economic increase. While many people will be marginalized the majority of the country will benefit greatly from the opening of borders. There are still serious questions however about whether Colombia is ready for such a change. I believe through determination and proper citizen alignment the country can rise to the task and ensure a prosperous future for all. The government must properly handle the externalities that arrive in conjunction with increased trade activity by implementing proper trade, evironmental, and labor regulations. Regulations must force Colombia's sustainable development not inflated short term development as the 80's brought, but I know the Santos administration has it in them.

The FTA will be beneficial for both parties and with the growing economic crisis we need to jump on anything that can help stimulate our economy as long as there are no foreseen long term problems with this agreement. The US should pressure Colombia into accepting this deal as soon as possible and hopefully their export producers will be able to adapt quickly in a sort of baptism by fire technique.

You don't think a Big Mac is cheap? KCal vs $? I personally cannot even value your nationalism. Y'all're (now for Johnson, how's that, eh?) not South Korea, and you're in for a spanking on this one.

My hopes you arrest whoever it was who agreed to this "free trade deal" in a few years.

While you are eating Doritos, drinking Coke, and becoming our proxies. Columbia (Venezuela, eh?), Panama (the canal, eh?), and South Korea (the atomic bombs in North Korea, eh?). Just remember that we'll pay more for the rice, so your countrymen will ship it to us. Then you'll pay us for food. Really very simple, sir.

Let´s simplify the question of Columbia and Colombia. While in Columbia and its neighbours (part of the US) the big problem raises with the illegal workers, or better said nearly slave workers, the same US idealists attack Colombia for impairment on workers rights. Living in America, thanks NOT in USA, I am amused about this argumentations. Perhaps the more important free trade agreement would be between Colombia and e. g. China, why import the goods from US and not direct from the producer?

Free trade between the U.S. and Columbia is a good move for both sides especially considering the economic crisis at hand. The FTA will possibly help jump start stagnant economies. The U.S. could also be looking for increased relations with South American countries. With countries like Brazil doing very well in today's world it is important for the U.S. to get on its good side. This FTA with Columbia is possibly a step toward the proposed Free Trade Area of the Americas.

Hopefully Obama's head is on what's best for the two countries, and making sure that both are prepared for this agreement. If Colombia isn't ready for the enactment, they shouldn't be pressured with trying to put Obama in a good light in the light of his 2012 campaign. This will hopefully be beneficial for both Colombia and the US.

Although products from the United States may be cheaper, I find it hard to believe that the Colombian people would buy American products over there own. Living in South America for numerous years, I've witnessed American products boycotted due to the fact that a hatred for the US is common within society. There is also the common notion that South American products are more natural and 'fresher' then the products which are chemically enhanced. In my opinion, the FTA will affect the profits of the Colombian small scale farmers but will not devastating effects on their business.

The problem with this trade agreement is that the US went into it without considering the consequences. Along with demanding for better human rights, the US should have also really pushed Columbia to repair their infrastructure. Now the US might be in a bind if Columbia can't produce or transport their exports properly.